Allows distributions from NJBEST account to Roth IRA as qualified withdrawals and excludes such distributions from gross income tax.

This bill amends New Jersey's NJBEST college savings program to align with federal tax law. It adds "special rollovers to a Roth IRA" to the definition of a "qualified withdrawal" under the NJBEST program, allowing account holders to transfer funds tax-free into a Roth IRA. This change specifically excludes such rollovers from New Jersey's gross income tax calculation, meaning the earnings portion of these transfers won't be subject to state income tax. The bill directly affects NJBEST account holders who wish to use funds for Roth IRA contributions instead of traditional education expenses, matching the federal 529-to-Roth IRA rollover rules effective after 2023.